Singapore Power Rates Fall by 10% Amid Lower Fuel Costs

Singapore's power rates are set to decrease by 10% from their record high after fuel prices dropped. The new rate of 28.59 Singapore cents (US$0.22) per kilowatt-hour will be in effect for the next three months, starting October.

The rate decrease is due to lower natural gas import costs, which are typically priced against oil or spot LNG benchmarks. Global fuel prices have been increasing over the last few weeks, but they were generally lower during the July to mid-September period compared to when the Iran war began.

Singapore relies heavily on imports of natural gas to generate electricity, and the authorities adjust tariffs each quarter based on prices over the first two-and-a-half months of the prior period. While this rate decrease will benefit Singaporean consumers at a time when inflation is high, SP Group warned that recent rebound in fuel prices could push electricity costs higher again next year.